Netherlands, Denmark to Create $1 Billion South Africa Hydrogen Fund

  • South Africa’s abundant wind and solar resources and industrial capacity have potentially positioned it to become a key producer of green fuel.
  • Boitumelo Mosako said in an interview in Pretoria on Tuesday that the fund, a first for South Africa, will also receive contributions from the DBSA and the Industrial Development Corp.

South Africa’s abundant wind and solar resources and industrial capacity have potentially positioned it to become a key producer of green fuel. According to the chief executive officer of the Development Bank of Southern Africa, the Netherlands and Denmark will help create a $1 billion green hydrogen fund for investment in South African projects.

Boitumelo Mosako said in an interview in Pretoria on Tuesday that the fund, a first for South Africa, will also receive contributions from the DBSA and the Industrial Development Corp. of South Africa Ltd., which are both state finance institutions, Sanlam Ltd., and the Hague-based Climate Fund Managers BV. South Africa’s abundant wind and solar resources and industrial capacity have positioned it to potentially become a key producer of green fuel, which is expected to replace natural gas ultimately.

Mosako said, “This is a first, and others will follow, that it would add a blended finance facility intended to catalyze more private-sector investment in the industry”. The planned fund comes as South Africa prepares to implement an $8.5 billion climate finance pact with some of the world’s richest countries as it seeks to transition away from the use of coal.

Leave a Reply

Your email address will not be published. Required fields are marked *